Courtesy of Benzinga.
Shares of Helen of Troy Limited (NASDAQ: HELE) gained more than 1 percent on Monday after the company announced that its fully owned subsidiary has acquired Hydro Flask for approximately $210 million.
Hydro Flask is a designer, distributor and marketer of hydration vessels for active lifestyles. Helen of Troy noted that the acquisition brings a fast growing brand that complements its housewares segment and extend its reach into the athletic channel.
Helen of Troy added the acquisition will be immediately accretive to its sales growth rate, gross margin, cash flow, adjusted EBITDA margin and diluted earnings per share.
“We are delighted to announce the acquisition of Hydro Flask, adding a well-respected and fast growing outdoor brand to our thriving Housewares business,” said Helen of Troy CEO Julien Mininberg.
“In less than five years, Hydro Flask has become a strong #2 in hydration bottles in the outdoor & fitness channels. The business has more than quadrupled in size since the beginning of calendar year 2014, grew over 50 percent in calendar year 2015, and has been the key driver behind the majority of the growth of the category itself.
“Hydro Flask is led by a group of passionate end users who are highly skilled at developing the premium segment of their category and an authentic brand culture with high quality products that delight consumers. Outdoor enthusiasts love Hydro Flask’s stainless steel hydration products, as well as its genuine brand heritage rooted in the outdoor mecca of Bend, Oregon. Hydro Flask’s team will remain in Bend, where its employees live every day with the same love and respect for the outdoors they share with their rapidly growing consumer base,” Mininberg concluded.
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